GROUP 3-ABM2B “TRAIN Law Implementation Affecting the Profitability of Micro Businesses in Batangas City Area” Rationale In spite of various tax reforms in the Philippines

GROUP 3-ABM2B
“TRAIN Law Implementation Affecting the Profitability of Micro Businesses in Batangas City Area”
Rationale

In spite of various tax reforms in the Philippines, the country is considered to have a complicated tax system. Specifically, the country is regarded to have some of the highest income and personal tax rates compared to its neighbouring regions. Moreover, many people specifically upper class citizens had been seen to neglect paying the right and fair taxes imposed to them. Additionally, there are still numerous products and services that are exempted from having taxes. In response to these issues, the Duterte Administration pushes the implementation of the new tax system which will bring comfort to the greater number of Filipino citizen and will pave way for the development of the country. The Tax Reform for Acceleration and Inclusion (TRAIN) Act, or the Republic Act No. 10963, is the first part of the five packages of the Comprehensive Tax Reform Program (CTRP) signed to be a law by President Rodrigo Roa Duterte on December 19, 2017. Essentially, these law aims to amend the different previous

Setting of the Problem

The study focuses on determining the effects of the TRAIN Law Implementation to the micro businesses in Batangas City area. The researchers choose to conduct the study in Batangas City area because it is considered as a 1st income class city. In this classification, the city generates an average annual income of less than Php 55,000,000. This means that the City of Batangas have numerous businesses which contribute to the development and progress of the city. Moreover, these businesses, specifically the micro businesses are one of the affected in the implementation of the TRAIN Law.

Basic Literature of the Study

According to the Republic Act 10963 (2017), or the Tax Reform for Acceleration and Inclusion (TRAIN) Law signed by President Rodrigo Roa Duterte on December 19, 2017, the new tax reform aims to redesign the tax system of the Philippines into a “simpler, fairer, and efficient tax system”.

As defined by Horton (2018), the term profitability is a tool of business entities to measure its efficiency. She also added that profitability is the ability to produce profit or return on an investment based on resources.

General Objective of the Problem

This research aims to determine how the TRAIN Law Implementation affects the profitability of micro businesses in Batangas City Area.